Charles Schwab 2014 Annual Report Download - page 72

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THE CHARLES SCHWAB CORPORATION
- 54 -
Consolidated Statements of Cash Flows
(In Millions)
Year Ended December 31, 2014 2013 2012
Cash Flows from Operating Activities
Net income $ 1,321 $ 1,071 $ 928
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses (4)
(1) 16
Net impairment losses on securities 1
10 32
Stock-based compensation 115 116 105
Depreciation and amortization 199 202 196
(Benefit) Provision for deferred income taxes (25) (21) 5
Premium amortization, net, on securities available for sale and securities held to maturity 125 162 222
Other (7)
15 26
Originations of loans held for sale - - (441)
Proceeds from sales of loans held for sale - - 513
Net change in:
Cash and investments segregated and on deposit for regulatory purposes 2,772 4,916 (2,549)
Receivables from brokers, dealers, and clearing organizations 44 (175) (104)
Receivables from brokerage clients (1,725) (496) (2,391)
Other securities owned 1
119 (43)
Other assets (30) 17 10
Payables to brokers, dealers, and clearing organizations 393 318 28
Payables to brokerage clients (1,028) (4,997) 4,950
Accrued expenses and other liabilities 196 400 (237)
Net cash provided by operating activities 2,348 1,656 1,266
Cash Flows from Investing Activities
Purchases of securities available for sale (15,134) (22,942) (29,035)
Proceeds from sales of securities available for sale 6,556 6,167 3,336
Principal payments on securities available for sale 5,843 10,772 13,867
Purchases of securities held to maturity (6,920) (16,061) (8,678)
Principal payments on securities held to maturity 2,687 3,895 5,453
Net increase in loans to banking clients (1,016) (1,634) (978)
Purchase of equipment, office facilities, and property (400) (249) (148)
Cash paid in business acquisitions - - (80)
Other investing activities (11) 2 3
Net cash used for investing activities (8,395) (20,050) (16,260)
Cash Flows from Financing Activities
Net change in deposits from banking clients 9,843 13,595 18,523
Issuance of commercial paper - - 300
Repayment of commercial paper - (300) -
Issuance of long-term debt - 275 350
Repayment of long-term debt (6)
(6) (732)
Premium paid on debt exchange - -(19)
Net proceeds from preferred stock offerings - - 863
Dividends paid (373) (368) (337)
Proceeds from stock options exercised and other 189 258 35
Other financing activities 29 5 (5)
Net cash provided by financing activities 9,682 13,459 18,978
Increase (Decrease) in Cash and Cash Equivalents 3,635 (4,935) 3,984
Cash and Cash Equivalents at Beginning of Year 7,728 12,663 8,679
Cash and Cash Equivalents at End of Year $ 11,363 $ 7,728 $ 12,663
Supplemental Cash Flow Information
Cash paid during the year for:
Interest $ 103 $ 99 $ 143
Income taxes $ 778 $ 624 $ 508
Non-cash investing activity:
Securities purchased during the year but settled after year end
$ 143 $ 81 $ -
Non-cash financing activity:
Exchange of Senior Notes $ - $ - $ 256
See Notes to Consolidated Financial Statements.